Here is a quick summary, courtesy of Dan Perrin:
The Bipartisan HSA Improvement Act of 2023 proposes the following provisions:
- Permits tax-free spending from a Health Savings Account on the monthly fees charged by Direct Primary Care physicians.
- Facilitates HSA contributions even when a spouse possesses a Flexible Spending Arrangement.
- Allows for transitions of deposits from a terminating FSA or HRA (Health Reimbursement Account) into an HSA.
- Enables employees to utilize their HSA funds at their employer’s on-site health clinic.
The HSA Modernization Act of 2023 will:
- End the prohibition against Disabled Veterans contributing to an HSA.
- Allow working seniors on Medicare and Indian Health Service beneficiaries to establish and contribute to HSAs.
- Make automatic HSA eligibility of all bronze and silver health plans on the health benefit exchange.
- Greenlight the option to avail of mental health benefits beneath the deductible without jeopardizing the health plan’s status as an HSA-qualified health plan.
- Allow tax-free spending on medical expenses 60 days before their Health Savings Account is opened.
- Both spouses can contribute catch-up contributions to the same HSA.
- Align the annual tax-free HSA deposit limit for families and individuals to equal the combined annual limit on out-of-pocket and deductible expenses under their HSA-qualified insurance plan.
- Clarify the scope of home care expenditures permissible through a Health Savings Account.
These bills will enhance the versatility and accessibility of HSAs, bolster the U.S. in retaining and attracting premier physicians, and crucially, widen equity by extending HSA-qualified health plans to individuals seeking financial assistance for their health plans on the health benefit exchange.